Local Government rates inquiry details announced

Minister
of Local Government Mark Burton today released the terms of
reference, membership and other details of the independent
inquiry into local government rates.

"The government has
worked closely with New Zealand First in developing the
terms of reference for the inquiry to ensure an independent
and robust process.

"We also consulted with other
political parties who showed a genuine interest in this
issue, particularly the Greens, and considered the views of
a range of organisations and key stakeholders such as Local
Government New Zealand," Mark Burton said.

A three-member
inquiry panel will conduct the inquiry. The members of the
panel are David Shand, Graeme Horsley and Dr Christine
Cheyne. David Shand will chair the panel.

Panel members
were selected on the basis of their combined experience
relevant to local government and the raft of skills and
expertise in rating systems, taxation and financial
management, governance and community participation and
well-being.

The Terms of Reference set out the inquiry's
objective, which is: 'to consider issues relating to current
local government rating, and to other revenue raising
mechanisms, and provide recommendations to the Government
for enhancing rating and other funding mechanisms for local
authorities.'

As part of its process the inquiry will look
into: the level of rates and related trends; reports of the
Local Authority Funding Project; drivers of local authority
expenditure; the sustainability of rates as the major
revenue raising tool; the impact of rates on land covered by
the Te Ture Whenua Maori Act 1993; the impact of government
assistance initiatives, such as the rates rebates scheme;
and the impact of exemptions from liability for rates.

The inquiry will commence work in November and report to
the Government by 31 July 2007. Public submissions will be
called for early in the new year. The public submission
process will receive both written and some oral submissions,
and run for a period of three months.

"Issues relating to
the way local authorities are funded are of significant
interest to ratepayers and both local and central
government. The use of an independent inquiry such as this
is the most effective process for looking at these important
issues," Mark Burton said.

"I am confident that the
skills and expertise brought to this inquiry by the panel
members will ensure that the issues are well canvassed. I
look forward to receiving the inquiry's final report next
year," he said.

"I would encourage all those who have an
interest in local government rating issues to provide input
to the inquiry once the public submission process gets
underway, either through their relevant interest group
representative bodies or directly to the inquiry," Mark
Burton said.

Independent Inquiry into Local
Government Rates – Panel Members

David Shand –
chairperson

Mr Shand has extensive international financial
experience, most recently for over eight years as a public
financial management specialist at both the World Bank and
the IMF – International Monetary Fund. He has also worked
with the OECD. He has held a number of senior positions in
state and federal government in Australia, including Deputy
Secretary of the Victorian Treasury and Queensland Public
Service Commissioner. In the early 1970s Mr Shand was a
city councillor with the Wellington City Council. Mr Shand
is also a Director of Meridian Energy Ltd. He is a former
University lecturer in public sector accounting and
budgeting and has published numerous articles on public
management – in areas of public financial
management.

Graeme Horsley – panel member

Mr Horsley
is a former partner of Ernst and Young's real estate
practice and is widely recognised as an expert in property
investment and valuation. He is a Life Fellow of the New
Zealand Institute of Valuers (NZIV). He was for 12 years
the NZIV representative on the International Valuation
Standards Committee, and was chair of the Committee between
1989 and 1993. He is a member of the Bay of Plenty District
Health Board and has held a number of company directorships
including Carter Group Ltd, Trustbank Wellington, and
Housing New Zealand. Mr Horsley also has international
experience of the real estate sector undertaking consulting
assignments in Asia, Australia, the Pacific Islands and New
Zealand. More recently he has focussed on major corporate
and public sector issues in investment and economic
analysis.

Dr Christine Cheyne – panel member

Dr
Cheyne is a senior lecturer at Massey University. She has
studied and written on local government in New Zealand. She
is an environmental sustainability representative on the
Horizons Regional Council Regional Land Transport Committee,
and is a member of the Taranaki/Whanganui Conservation
Board. She has previously worked in planning and research
for the Palmerston North City Council. Dr Cheyne has
specialist knowledge in the community welfare aspect of
local government, including community planning,
representation, participation and well-being which has been
the focus of her research and work. In addition she has
contributed to publications on local government leadership,
decision-making and
governance.

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